Didn't really feel like reading it all but I'll just respond based on the OP and the thread name.
Innovation > Graphics. Happy consumers > Unhappy customers. Affordable Prices > Unrealistic prices.
They all tie in and Nintendo, whether you like them or not, are the leaders of the pack. I'm hardly a fanboy, I just say it how it is. Nintendo and Sony both took risks. Sony's was to make a super powerful machine with insane potential, but it cost a lot to make and a lot to consumers. Nintendo, following the DS' success, went for a more broad approach, went for lower costing, but respectably powered machine. It will never touch the 360 or the PS3's horsepower, but do you really think people care that much? And by people I mean in general. The niche market gamers probably care, they like all their glam and stunning displays of "artwork", but a game is simply for enjoyment. I don't care and there's a great amount of people in the world who don't care if their games are in 1080p, or if the pixel shaders are the best, or about AA, or all that other crap. Companies, and not just console makers, need to stop worrying about what agenda THEY want to push with their products and instead focus on what the consumer wants.